MINIEYE, a perception solution provider for self-driving vehicles, announced it has completed a C round of financing worth up to 270 million yuan ($40.2 million) on Wednesday, showing recognition of the automatic driving sector in the market.

The company offers artificial intelligence-backed technologies to help self-driving vehicles better comprehend the surrounding environment and make decisions, to increase automation, lower the incidence of traffic accidents and ensure people's safety, it said.

The new financing will help ease its pressure in large-scale delivery of products, increase its cash flow and meet the demand of purchasing, said Liu Guoqing, founder and CEO of the company. It will also be used in research and development of high-level automatic driving technologies.

Liu said mass production is a priority for many automatic driving companies, through which the technologies can become more mature and advance by collecting masses of usage data.

Cost control and after-sales services are new challenges automatic driving companies are facing, especially when the automobile industry is experiencing a downturn pressure, he added.

MINIEYE's products have been used in brands such as General Motors Co, SAIC Motor Corp, BYD and Dongfeng Motor. Investors in its C-round financing include Harvest Investments, Oriental Fortune Capital and Vision Plus Capital and NavInfo.